Mr. B,
I am a Lexington resident and found your services on the web. Please let me know it is cost-effective to pursue my case as outlined below.
1) We own a residence that was valued at about $2m during the previous tax year.
2) On January 2, we received the new valuation which increased by 18.3% in a declining market.
3) I went to the assessor’s office but they refused to explain the increase (I don’t think that they knew; it seemed like an arbitrary decision).
When I asked for an abatement form, the assistant assessor noted that if I filed for an abatement, they may come to my house and make it worse. Yes, it was a clear threat. I just wanted a rational explanation and couldn’t get one.
4) I collected data on numerous houses in my peer group and prepared a careful analysis. The analysis clearly shows that (a) no other property experienced a similar increase (average was 4-5%); and (b) nearly identical property in my neighborhood was assessed at a significantly lower value.
5) I filed for an abatement, arguing that the assessment is not equitable, a basic principle of fair taxation. The abatement application contains detailed data and analysis.
6) The abatement was denied without an explanation. They checked a box (”assessment was at fair market value”).
In your experience, is it cost-effective to go to the next level (with or without assistance from an attorney)?
Thanks,
Stefan T
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Stephan:
It sounds like you have done some due diligence, and I’m surprised the Lexington assessor wouldn’t even sit down with you to discuss the matter. By filing an appeal to the Appellate Tax Board, you can at least give yourself some leverage so that they must eventually sit down with you to discuss the matter.
What you have done appears to reflect a “disproportionate assessment” argument. In other words, you are claiming that your property was not assessed on a similar basis in comparison to similar properties. What you need to do is establish that your property assessment reflects an over-valuation, in that it if it were to have sold on the assessment date (1/1/08), the sale price would have been less than the assessment. This is established by finding what comparable properties have sold for (not their assessments) on or around the assessment date (1/1/08), and using those sales to develop the fair market value for your property, which is the value you should be taxed upon.
I do not know if it is cost-effective to hire someone to take your case, because most attorneys, like myself, and most tax reps only work on a contingent fee basis. Typically there is not enough of a spread to make it cost effective for the professional when it comes to a home taxes. However, if you can find someone, then by all means. On the other hand, appealing the case and handling it yourself may be cost effective. The filing fee is minimal and then you’ll probably find that the assessor will discuss the case with you, if you have good comparable sales data. In my experience, if you have a good case, the assessor will settle it with you without going to a hearing. Again, the choice is up to you.
To assist homeowner’s who want to know how to appeal their property taxes, I wrote a 99 page guide entitled “The Homeowner’s Guide To Property Tax Abatement” which explains everything, especially how to prepare and adjust the comparable sales data, and how to present the case before the assessor. If that is of interest go to
www.HometaxGuide.com and you can purchase a copy. Once you understand the entire process, as laid out in plain English in the Guide, you’ll be in a position to protect yourself this and every year you pay property taxes.
Hope that helps…
Mr. B
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Hi Mr. B,
This is extremely helpful. I was under the impression that proofing inequity in the assessment is enough to appeal. In other words, I showed that very similar houses in the same neighborhood had significantly lower assessments. I now understand that it was the wrong strategy and the town probably knows that homeowners face an uphill battle.
I will definitely get your book and recommend it to others. Because Lexington taxes *very* aggressively, there are several unhappy homeowners. Their unwillingness to discuss or explain doesn’t help and makes it appear that they are trying to hide something. When I initially called the office, the assistant/residential assessor was on the phone and confided that he doesn’t know why my assessment went up so drastically. He also asked me not to quote him because he has a family and could lose his job over this.
Thanks again!
Stefan
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